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12A and 80G Registration (F)

12A and 80G Registration.

 

The 12A and 80G Registration applications can be applied together or it can also be applied separately also. If any  organization wants to apply both applications separately, then application for registration u/s 12A will be applied first. Getting 12A registration is mandatory for applying application for registration u/s 80G of Income Tax Act, 1961.

The various benefits of Section 12A registration are enumerated as below:

1) The income applied for charitable or religious purpose will be considered as application of income i.e. expenditure incurred for charitable or religious purpose will be allowed while computing income of the trust.

2) The benefit of accumulating or setting aside of income not exceeding 15% for charitable or religious purpose will be available.

3) The accumulation of income, which is deemed as application of income as per section 11(2), shall not be included in the total income.

4) NGO’s receives various grants from government and other agencies. They are eligible to get grants and financial funding from various agencies. These agencies generally make grants to 12A registered NGO’s.

5) Benefit in Section 80G registration. NGO’s have to apply separately for Section 80G registration.

6) Benefit in FCRA registration. NGO’s seeking foreign contributions have to obtain FCRA registration from the Ministry of Home Affairs.

7) Finance Act’2014 has extended the benefits of registration for prior years as well. These benefits have been extended to the trusts or institutions where the registration has been granted under section 12AA.

8) Registration under section 12A is one-time registration. Once the registration is granted to the trust, it will be hold good till the cancellation of registration. There is no provision which requires any renewal of registration. Thus, the benefits of registration can be claimed for lifetime by NGO.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. The new process of registration will impose higher administrative burden on tax authorities.
  2. This new process of registration will become more cumbersome and costlier to the NGOs.
  3. Additional burden on NGOs in case of delayed filing of returns.
  4. NGOs dependent on overseas funds are exposed to higher risks.
  5. Greater control and leverage on Government authorities to monitor and control the activities of NGOs.

80G Registration procedure consists of following steps:

  1. The application for 80G certificate needs to be submitted to the Commissioner of Income Tax (Exemption) in the jurisdictional area of the institution.
  2. Once the form and the required documents for 80G registration are submitted, an on-the-premise inspection is done by the Income Tax department.
  3. The officials might ask for additional documents and evidence that are required to be made available by the institution.
  4. On satisfactory verification and scrutinizing of documents and the office of the NGO, the 80G certificate is awarded to the institution by the Commissioner.

 

  • Form 10G.
  • Registration certificate and MoA in case of Section 8 companies and Societies; Trust Deed in case of a Trust.
  • No objection certificate from the owner of the property where the registered office of the Institution is located.
  • PAN card copy of the NGO.
  • Copy of Utility Bills – Electricity bills, water bills or House Tax Receipt.
  • Donor list along with their complete address and PAN.
  • Book of Accounts & Income Tax Return documents, of last three years.
  • List of welfare activities being carried out & the progress report for last three years.
  • Detailed list of the board of trustees.
  • Deed for Verification – Original RC, MoA or Trust Deed.
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12A and 80G Registration

Conditions to be satisfied to get approval under Section 80G

Section 80G (5) prescribes certain conditions to be satisfied to get the approval u/s 80G:

♠ The Institution should be established in India for Charitable purpose.

♠ If the Institution or fund is deriving any income, such income should not be liable to inclusion in its total income under the provisions of sections 11and 12 or clause (23AA) or clause (23C) of section 10.

♠ If the institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of section 11shall not apply in relation to such income, if:

(a) the institution or fund maintains separate books of account in respect of such business;

(b) the donations made to the institution or fund are not used by it, directly or indirectly, for the purposes of such business; and

(c) the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business;

♠ The instrument under which the institution is constituted shall not contain any provision for transfer or application of the income or asset for any purpose other than a charitable purpose.

♠ The institution should not be for the benefit of any particular religious community or caste.

♠ The institution should maintain regular accounts of its receipts and expenditures.

♠ The institution should be either constituted as a Public Charitable Trust or a registered society or a company registered u/s 8 of the Companies Act’2013 or is a University established by law, or is any other educational institution recognized by the Government or by a University established by law, or affiliated to any University established by law, or is an institution financed wholly or in part by the Government or a local authority.

 

 

Basic

INR 1,500/-

One Time Fee

  • GST Registration
  • MSME Registration
  • Bank A/c.

Service Provide Within 7 Days

Standard

INR 11,999/-

One Time Fee

  • GST Registration
  • Shop & Establishment Registration
  • MSME Registration
  • Trade Mark Registration
  • Logo Design
  • Opening Bank A/c.

Service Provide Within 15 Days

Premium

INR 11,999/-

Yearly Fee

  • Yearly GST Compliances
  • Income Tax Return

Services Provided Before the Due Date

Frequently Asked Questions

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